Commercial leases in Morocco: tenant and landlord rights in 2026

Commercial leases in Morocco are primarily governed by Law No. 49-16 on leases of buildings or premises rented for commercial, industrial or craft use. It was promulgated by Dahir No. 1-16-99 of 18 July 2016 and published in Official Gazette No. 6490 of 11 August 2016. It entered into force six months after that publication, in accordance with Article 38. It replaced the Dahir of 24 May 1955, which is still incorrectly cited in many lease templates available from stationery shops or online.

Article 1 covers, in particular, premises in which a business is operated, as well as certain ancillary premises essential to that operation. Protection therefore does not depend solely on the word “commercial” appearing in the agreement. The court examines the activity actually carried on, the existence of a customer base, any registration in the Commercial Register and the conditions of occupancy. A mere office used occasionally, with no identifiable business, may not benefit from the full protective framework of Law 49-16.

Article 2 excludes several specific categories, including certain property forming part of the public or private domain of the State, local authorities or habous, as well as agreements governed by a special regime. Temporary occupancy arrangements, real estate leasing and certain units within complexes subject to special management must also be classified with care. In practical terms, the title given by the parties is insufficient: an agreement called an “occupancy permit” may be reclassified as a lease if its content and performance reveal a genuine letting.

Law 49-16 primarily seeks to formalise the relationship, protect the value of the business and expedite certain proceedings, particularly in cases of unpaid rent or abandoned premises. It does not, however, grant the tenant an absolute right to remain on the premises. The landlord may obtain eviction in the cases provided for by law, sometimes without compensation where the tenant has committed a serious breach. Conversely, changing the locks, cutting off the water or removing the sign without an enforceable decision constitutes an unlawful act that may be stopped in urgent proceedings.

Article 4 of Law 49-16 grants the tenant a right to renewal where the tenant proves consecutive occupancy of the premises for at least two years. This period must not be confused with a mandatory minimum contractual term. The tenant must be able to establish genuine and sufficiently continuous operation: Commercial Register records, business tax documents, invoices, tax returns, bank statements, water and electricity bills, or employee certificates are useful evidence. Purely fictitious occupancy is insufficient to protect a non-existent business.

The two-year period is not required where the tenant has paid key money or a sum in consideration for the leasehold right, provided that payment is recorded in writing in accordance with Article 4. In practice, a clear distinction must be made between the security deposit, which is refundable subject to conditions, and key money, which is permanently retained. A sum paid in cash without a receipt will be difficult to classify. The agreement must specify its amount, basis and tax treatment; otherwise, each party may put forward a different account.

Law 49-16 does not rely on a renewal request that must be served six months before expiry under a mechanism comparable to French law. The decisive point is generally the notice to vacate or eviction notice issued by the landlord. Articles 5 and 6 require this notice to state its grounds and to be given in a manner that allows receipt to be proven. The statutory period stated in the notice depends on the proceedings initiated; the tenant must respond immediately because some challenges are subject to short time limits.

The landlord may refuse to continue the lease but must then bear the consequences prescribed by law. If no ground excluding compensation is established, eviction generally gives rise to compensation corresponding to the loss caused. Cases involving reconstruction, recovery of certain ancillary premises or a building at risk of collapse are subject to specific rules laid down in particular by Articles 8 to 12. A mere desire to re-let at a higher rent does not allow the landlord to disregard rights already acquired by the tenant.

At expiry, the parties should sign an addendum specifying the new term, the new rent and whether the guarantees remain in force. Continuing to collect rent without reservation may create a situation of tacit continuation, the effects of which must be assessed based on the agreement and the documents exchanged. The tenant must not stop paying on the ground that no addendum has been signed. For its part, the landlord should avoid vague or contradictory notices, which are often invalidated for failure to state precise grounds.

Termination may result from a written agreement, expiry of the term accompanied by due process, or a court decision imposing a remedy for non-performance. An agreed termination must address the departure date, rent, security deposit, works, keys and any waiver of all claims. A handwritten sentence merely stating “lease terminated” leaves too many questions unanswered. For a corporate tenant, the signatory must have authority to bind the company, particularly when waiving substantial eviction compensation.

Non-payment is the most common ground. Article 7 provides for the loss of eviction compensation where the tenant remains liable for an amount equal to at least three months’ rent after receiving a formal notice allowing fifteen days for payment. Article 17 establishes specific judicial proceedings for unpaid rent. The demand must identify the lease, itemise the instalments and clearly warn of the consequences. An incorrectly calculated debt that includes unsubstantiated charges may undermine the entire procedure.

Other breaches may justify eviction without compensation under Article 7: alterations detrimental to the building, an unauthorised change of activity, prohibited subletting, prolonged closure resulting in the loss of the customer base, or sufficiently serious contractual breaches. The court examines whether they occurred and how serious they were. A minor breach that is promptly remedied does not necessarily have the same effect as a dangerous structural alteration. The landlord must produce official reports, correspondence, photographs, invoices or technical reports; a mere allegation is generally insufficient.

The landlord must arrange for the formal notice or notification to be served by a judicial officer, formerly known as a bailiff, or by another method permitted under the applicable legislation. In 2026, the practical cost of straightforward service is often between 300 and 1,000 MAD, with additional charges for travel, multiple attempts or an official statement of findings. This range depends on the applicable tariff and the work actually performed. The Commercial Register address, the address in the agreement and the actual address of the premises must be verified.

A tenant receiving a demand must pay the undisputed amounts by a traceable method and promptly challenge the balance. Depositing or paying a sum without specifying how it is to be allocated may create a dispute over which months have been paid. The landlord, for its part, must never carry out a private eviction. The general law governing termination for non-performance, including Article 259 of the Code of Obligations and Contracts, supplements the special framework where Law 49-16 does not address the matter, but it does not permit the mandatory safeguards of the commercial lease regime to be disregarded.

A lawful eviction follows several stages: a valid preliminary instrument, referral to the court with jurisdiction, an enforceable judgment or order, service of the decision and then enforcement by a judicial officer. The landlord may not take the law into their own hands, even if several rent payments remain outstanding. Changing the locks or placing goods on the pavement exposes the person responsible to an action for restoration of possession, damages and, depending on the facts, criminal prosecution. Ownership of the property never exempts the owner from complying with the procedure.

The summary proceedings provided for in Articles 149 et seq. of the Code of Civil Procedure allow the president of the court to order urgent measures without deciding a serious dispute on the merits. They may be used to stop an unlawful act, preserve premises, appoint an expert or address certain situations of occupation that is manifestly without legal basis. However, if the validity of the termination notice, the amount of the debt or entitlement to compensation requires detailed analysis, the summary proceedings judge may find that there is a serious dispute and refer the parties to proceedings on the merits.

The special procedure under Article 17 may expedite eviction for unpaid rent where the statutory conditions are strictly satisfied. Abandoned premises are also subject to a specific mechanism under Article 18. The landlord must document the abandonment rather than entering the premises directly: an official report, utility bills, prolonged closure and efforts to locate the tenant are useful. Goods, records or machinery still present prevent a hasty conclusion that the premises have been abandoned. Their inventory and disposal must be legally secured through the courts.

In practice, an urgent order may be obtained within a few weeks where the file is complete, but no timeframe is guaranteed. A period of two to eight weeks for an initial decision has been observed in several commercial courts in 2025-2026, excluding difficulties with service. An appeal, enforcement incidents or a serious dispute may add several months. Proceedings on the merits concerning eviction or compensation may take eight to twenty-four months at first instance, and longer where an expert assessment or multiple adjournments are required.

After the decision, the judicial officer serves the enforceable title and issues the required enforcement documents. The tenant may exercise available remedies, seek a stay of enforcement where permitted by law or challenge a genuine enforcement difficulty. However, a remedy does not automatically stay enforcement. The landlord must budget for locksmith, transport and storage costs and, where applicable, law enforcement assistance. The tenant, for their part, must remove their goods and retain an inventory signed by both parties to avoid a further dispute.

The first mistake is signing a generic form without checking the title deed, the premises’ designated use under planning rules or the signatory’s authority. A lease does not guarantee that the proposed activity will be authorized by the municipality, the co-ownership association or the relevant sectoral authority. Before paying key money, the tenant must check the operating permit, access, utility meters and necessary works. For their part, the landlord must accurately identify the tenant company and obtain the agreed guarantees before handing over the keys.

The second mistake is making cash payments without a receipt. In a dispute, the tenant must prove payment; a bank transfer stating the relevant month is much safer. Receipts must specify the rent, service charges and period. The landlord should avoid accepting partial payments without reservation when proceedings are underway, as their allocation may be disputed. A statement of account signed by both parties each year often prevents an old disagreement from becoming a claim covering several financial years.

The third mistake is confusing the end of the agreement with the automatic loss of the right to renewal. Even after the written expiry date has passed, the tenant may retain the protection of Law 49-16. Conversely, merely occupying premises for a long period does not cure a serious breach or a lack of evidence of business operations. Leases entered into before the law came into force sometimes raise transitional issues; they do not all become subject to a simplistic rule tied to the first renewal. The agreement, prior instruments and the date of the proceedings must be examined.

A lawyer can usefully assist before signature by checking the lease’s legal classification and drafting clauses on permitted use, works, rent review, assignment and guarantees. In a dispute, the lawyer checks the validity of the termination notice or formal demand, selects the court, quantifies the claim and prepares the expert assessment. Such assistance is particularly recommended where key money, a high-value business, a foreign company or major works are involved. A notification error may cost more than the initial drafting of the agreement.

For a Moroccan residing abroad, the power of attorney must precisely specify the powers granted: signing the lease, collecting rent, serving termination notice, settling a dispute or initiating proceedings. Depending on the country, legalization, an apostille or consular formalities must be checked. An unrestricted general power of attorney should not be given to an intermediary. The matter may subsequently be monitored through Mahakim, the lawyer’s notifications and written reports, but the originals of the lease and other instruments must be kept in a secure location.